Friday, February 24, 2012

Oil companies are to blame for high gas prices

No, this is backwards. If it weren't for the government's interference, gas prices would be lower. If you'd leave it to Ms. whatshername, there'd be no oil at all. People would have to use the horse and buggy once again because with all of the demonization of the oil industry, they wouldn't be able to drill for any oil.

You know, like the nuclear energy industry who can't build new reactors. Any energy project at all is opposed for some reason or another. The government types like this woman just need to get out of the way and the energy industry will produce. Prices will be competitive.

Whatshername doesn't trust private enterprise, she trusts government. So, what's the government's track record? Not good.

Update: An alternative point of view here.
Early federal fracking demonstrations can be fairly characterized as big, slow, dumb, and expensive. But when it comes to technological innovation, the big, slow, dumb, and expensive phase is almost always unavoidable. Innovation typically proceeds from big, slow, dumb, and expensive to small, fast, smart, and cheap. Think of building-sized computers from the 1950s that lacked the processing power to run a primitive, 1970s digital watch.

Private firms are really good at small, fast, smart, and cheap, but they mostly don’t do big, slow, dumb, and expensive, because the benefits are too remote, the risks too great, and the costs too high. But here’s the catch. You usually can’t do small, fast, smart, and cheap until you’ve done big, slow, dumb, and expensive first. Hence the reason that, again and again, the federal government has played that role for critical technologies that turned out to be important to our economic well-being.

Yes, but now that the fracking process has gotten results, the government types want to shut it down.  The government helped with big energy projects like the Hoover Dam, but they are also the ones who want to tear down dams like these.

No comments: